Investors withdraw $258 million from HTX platform after hacking incident

The HTX cryptocurrency trading platform, formerly known as Huobi, has witnessed… A wave of money outflow worth $258 million.
This has been since resuming its operations after being exposed to a major security breach on November 22nd. Which forced the stock exchange to stop services and incur losses amounting to $30 million.

An HTX spokesperson stated: These outflows represent a small portion of our overall reserves, an indication that the platform is stable and robust. The spokesman added that the platform is committed to providing safe and smooth trading services.

Figures from blockchain data platform DefiLlama revealed that investors began withdrawing their funds from the platform between its restart date of November 25 and December 10.

This indicates customer concerns after the security incident that occurred last month. HTX announced that it lost $30 million in cryptocurrencies during the hack and temporarily suspended withdrawals and deposits after the attack.

The HTX platform is the 16th largest cryptocurrency exchange in terms of daily trading volume, with a total of $1.6 billion in the last 24 hours, according to CoinMarketCap.
HTX platform reserves consist of 32.3% BTC and 31.8% TRX, the native currency of the Tron network launched by Justin Sun in 2017.

The HTX platform’s native currency, called HT, represents about 14% of reserves. Followed by a cryptocurrency called stUSDT backed by Justin Sun with 12%.

HTX and entities linked to Justin Sun face their fourth hacking incident in two months

After the restart on November 25, Sun confirmed in a post on the X platform that an investigation is underway. Losses resulting from the HTX Hot Wallet hack will be fully compensated.
Over the past two months, entities associated with Justin Sen, including HTX, Poloniex, and HECO Bridge, have experienced four hacking incidents.

On September 24, the platform suffered a hack that resulted in the loss of $7.9 million in digital assets, according to blockchain analytics platform Cyver.

The HECO Bridge, a network created by HTX to enable cross-chain transfers, was hacked on November 22. The hackers were able to transfer at least $86.6 million to suspicious addresses.

The largest hack loss was $100 million from the Poloniex exchange on November 10.

Security firm BlockSec said HTX recovered $8 million stolen in September. But the fate of the $30 million stolen last month is still under the control of hackers.

Investors in digital assets have become more sensitive to changes in flows and reserves at cryptocurrency trading platforms after the FTX platform collapsed last year due to a large deficit in its accounts.

The HTX platform has faced many regulatory and regulatory challenges in the USA.

The SEC accused it in a March lawsuit of manipulating the market to make the coin appear to be actively traded. Justin Sun responded by tweeting at the time, saying the lawsuit lacked merit.

It should be noted that November witnessed the worst month for cryptocurrency theft in 2023, as hackers and pirates were able to steal $363 million in digital assets.

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